RealTown's RealTalk

Has anyone had good luck with short sales? If so how did you conviece the bank to accept?

pschroeder@minnesotahomes.com

Has anyone had good luck with short sales? If so how did you conviece the bank to accept?

Pam,

In my experience you don't convince them of anything, they convince themselves. You have to sell them on the low price as an incentive to sell it fast. If homes in the neighborhood are selling fast your job is easy. If they are not selling or going slow, you have an uphill battle. The most important thing in a short sale is patience. Pure and Simple. They move at a glacial pace and it is tough for all involved. Waiting is not something most humans do that well. Good luck to you!

Steve Facella

561-635-8393

piergroupsteve@yahoo.com

www.stevefacella.com

Has anyone had good luck with short sales? If so how did you convince the bank to accept?

Has anyone had good luck with short sales? If so how did you convince the bank to accept?

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Has anyone had good luck with short sales? If so how did you conviece the bank to accept?

Pam, My best suggestion is to make sure to discuss with your seller their financial situation in advance and know what you are getting in to.  This way you will have time from your listing appointment to your contract date to get all of your information together (comps, current market trends, seller financials).  This is much better than doing it all at once. 

Michael Haritos

Owner/Broker/Realtor

Keller Williams Realty

Newark, DE

302.355.1813

Michael@MichaelHaritos.com

www.MichaelHaritos.com

From the buyer agent perspective I have started sending with my contracts/offers an authorization signed by the seller that allows me to ask for status updates on the submitted contract, which I can send once it goes to the bank, or can be sent at the same time the offer is delivered to the bank by the lisitng agent.  I have little faith in listing agents being able to handle the enormous job of constant follow up so I have taken the bull by the horns and am now making my own calls.  Well, I did make calls but I don't show short sale listings any more...  after the last 3 crashed and burned I won't show them...  We have plenty to choose from that aren't in short sale so why put my buyer's through that?  Most short sales that I see are priced so far below whats reasonable that the bank will never consider them and of course my buyers LOVE them because they look like smokin deals, which they aren't.

Its just my observation though and hope to hear soon through the grape vine or RT that banks are starting to loosen up a bit ... or the listing agents get a grip that pricing a $325K home at $250K isn't going to be a pay check for them maybe I will show short sales again.  And I have already tried counceling my buyers on writing an offer the bank just MAY accept... all they see is $250K ... and think they can negotiate more off of that...:))  Ahhhh... what a world we live in.  Before I show homes now I have to run the comps and check tax records to make sure what the status is... I have begged the local MLS  to start laying out fines to agents not marking them as needing "lender approval", but nothing yet.... 

Gloria Handley, CRS, GRI

RE/Max Achievers

Chandler AZ

First explain to your buyers and sellers that the term short sale is an oximoron.  It should be called a short pay.    They typically take much longer to get approved.  If the buyer is in no hurry they can get a great buy. 

While banks are tightening up, an accurate buyer price opinion is invaluable.  However, if the BPO is higher than the offer then I have found that taking photos of issues with the home as well providing other information such as location issues such as being near a freeway, under a flight pattern, etc. can help the bank be more reasonable.   

First explain to your buyers and sellers that the term short sale is an oximoron.  It should be called a short pay.    They typically take much longer to get approved.  If the buyer is in no hurry they can get a great buy. 

While banks are tightening up, an accurate buyer price opinion is invaluable.  However, if the BPO is higher than the offer then I have found that taking photos of issues with the home as well providing other information such as location issues such as being near a freeway, under a flight pattern, etc. can help the bank be more reasonable.   

HI Pam.   It looks like you have had some great feed back.  From what not to do to what to do.  Remember though.  Banks and mortgage companies don't want the inventory.  They don't want properties they want the money coming in. DeeDee gave some good advise.  It does take work, but the first thing I do is sit down with my buyers and explain to them how a short sale works, and what step the loan holder is going to have to go through.  The time involved before knowing anything.   That way they are prepared.  In my area, ,we do not have many short sales or Forclosures at all. I have to to 2 counties over to find them.  But when I was at Keller Williams, I worked forclosures.  40% of my listings were forclosures.  BUt the best thing I do for myself is this,  every Monday morning at 9AM  I read the Hot sheet reports. So I keep up with what is on the market, and what is selling.  Then I can create a CMA in about 3 mins from start to binding it.  It is worth the time it takes to study the market conditions every week.